What I learned from closing my second business…

What I learned from closing my second business…

Over the last several months my partner and I have been discussing and analyzing whether or not we should close down our business after seven years of operation.

We came to the conclusion that it was best to shut it down.

It was a great run, especially for two guys who didn’t really know what they were doing in the beginning, but we figured a lot of things out over seven years.

I will speak from my perspective only; because at the end of the day all I know is my perspective. My first business was and still is, real estate, but my second business was a service. This was a different beast altogether.

There are many reasons why I could say I agreed with shutting it down, but if I am honest with myself, it really comes down to one reason.

I could say that it is because we lost one of our biggest clients, which was one of our first clients as well. When I say we lost them, we didn’t technically lose their business to a competitor or anything. They had just made some changes and were doing more things in-house. They actually said that they would probably still do business with us but just wasn’t sure of timelines.

I could also say that it was getting harder and harder to execute on some of the functions of the services we provided. Which would be true, especially for certain clients.

Due to certain regulations and policies by the government, it actually helped our business in the beginning, but some of those early needs that forced companies to need our services waned over the last several years. Also, many of the organizations we worked with have changed many of the processes and procedures over time as well, which led to many of them not wanting or needing our services as much.

I could also say that my partner and I agreed with shutting it down, because we were both at different points in our life and career. And the business was really on autopilot, and allowed us to do other things.

What started out to be a full-time job became less than a part-time job for both of us.

Keep in mind; both of us left full-time careers at pivotal moments in our careers seven years ago. We both went from making very nice salaries (six-figures plus) to making zero dollars.

We both had mortgages, I had several. He had children at critical stages of life. Or should I say, expensive points in life.

At the time we made this decision to go all in. All we had were our personal bank accounts, some ideas, a few leads, some terrible processes, and a lot of HOPE.

We weren’t dumb at the time. We had planned and prepared. When we launched we thought we were ready. But we learned a lot about business, sales cycles, and the reality of operating a business. Especially a business that is more of a product than an actual business.

What I learned from the experience was this.

Business is hard. Starting something from nothing is difficult.

I learned more about what it takes to operate a business.

I learned that most businesses are making it up as they go along.

Companies outsource services more than you would ever realize.

I learned about taxes. States, federal, business, and how it impacts your personal taxes.

I learned pricing.

Sales and execution

Take risks.No matter how big or small. When I went to zero then, the stakes were smaller, since then I have done it twice again.

I could go on an on about what I learned, because I learned many things along the way, that I wouldn’t have ever learned if I wouldn’t have done it.

Now here we are seven years from when it all began. And we are shutting it down. As I mentioned earlier, it really comes down to one reason why I decided to shut it down.

The one reason is commitment. It is really that simple. Here is what I know about commitment.

Commitment has nothing to do with passion. Although if you have passion for something it helps you have more commitment towards it. But you don’t have to be passionate about something to be committed to it. That is my opinion.

But I lacked commitment towards it.

Wherever there is commitment. You will see three things.

You will see time and energy being expended. And you will see money being spent on it.

I didn’t have enough of any of the three of these being invested into the business.

If I am honest with myself, we probably should have closed it many years ago, but we would renew a contract or land another one. That would give us a shot in the arm, but it would wane after a few months or so.

It is not a sad time that we made this decision. It really is something to celebrate.

We both have other things we are doing, and although I didn’t put as much time as I should have into the business we are closing. It does allow me to focus on my current business.

It is also the reality of life, all good things to come to an end. We were profitable from day one. We never lost a dollar of our own money. We made money along the way, which was the most important thing.

But the thing you can’t put a price on is the education I got from running a business. That education is more important than anything.

Takes risks, keep going, and pursue whatever it is you want to pursue in life. You only have one. Don’t have any regrets.